Australian Consolidated Milk and Pactum Australia are constructing a new UHT milk processing facility in northern Victoria with an investment of A$40m ($36.6m), a move which is expected to create 100 jobs.
Pactum Australia is owned by Freedom Foods and ACM is part of the Pactum Group.
The new facility, which will have an initial capacity of 100 million liters with potential to increase up to 350 million liters over time, is expected to support 200 dairy farms in the Goulburn Valley.
ACM director John Hommes said that the UHT milk will be produced at the new facility for the export market.
The facility is expected to supply UHT milk as early as December this year.
Freedom noted that Pactum has decided to establish the new facility to cater to the increasing demand for UHT milk in Asia.
Pactum Australia, based in Sydney, is manufacturer of long-life food and beverage products. Established by dairy farmers in 2008, ACM currently has about 50 suppliers.